<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Chattem, Inc.'s unaudited financial statements and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> NOV-30-1998 <PERIOD-START> DEC-01-1997 <PERIOD-END> AUG-31-1998 <CASH> 1,532 <SECURITIES> 0 <RECEIVABLES> 41,764 <ALLOWANCES> 775 <INVENTORY> 19,366 <CURRENT-ASSETS> 64,661 <PP&E> 31,859 <DEPRECIATION> 18,051 <TOTAL-ASSETS> 371,792 <CURRENT-LIABILITIES> 54,365 <BONDS> 292,358 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 2,098 <OTHER-SE> 17,463 <TOTAL-LIABILITY-AND-EQUITY> 371,792 <SALES> 161,066 <TOTAL-REVENUES> 161,066 <CGS> 44,917 <TOTAL-COSTS> 128,653 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 19,232 <INCOME-PRETAX> 24,080 <INCOME-TAX> 9,011 <INCOME-CONTINUING> 15,069 <DISCONTINUED> 0 <EXTRAORDINARY> (2,859) <CHANGES> 0 <NET-INCOME> 12,210 <EPS-PRIMARY> 1.33 <EPS-DILUTED> 1.28